Japan's Insurers Switch
Funds to Domestic Bonds

Dow Jones Newswires

Updated April 23, 2004 12:01 a.m. ET

TOKYO -- Many of Japan's eight largest life insurers have lost their enthusiasm for foreign bonds and are more interested in Japanese debt securities as long-term interest rates rise in their home market.

A strengthening Japanese economy has pushed up yields on long-term bonds, making the assets more attractive and a better fit with insurers' long-term liabilities, which mostly are policies with guaranteed returns.